Updating Lehman Sell Call

Thursday, June 12, 2008 | 12:25 PM

2 weeks ago, we reiterated a previous Sell on Lehman Brothers (LEH). That worked out pretty well. Even with the Dow up 160 points today (after falling 1,000 points in only 14 trading sessions) Lehman cannot catch a bid and remains under pressure.

The LEH news is the management shuffle -- CFO, COO out. I suspect more heads will roll, including Fuld's. The bottom line is the Short sellers and bloggers were right, management was full of crap, and my friend Charlie Gasparino was --w ell, watch the video below.

Let's go over the two calls from two weeks ago on CIT Group (CIT) and Lehman (LEH): 

CIT is a break-even -- you lost nothing by avoiding the stock. The Lehman Sell call was a jumbo winner:

If you avoided the stock, well, good for you! You stayed out of trouble;

If you sold it, Congrats! You just saved yourself a 30+% whackage.

And if you shorted it or bought put options, well, you should be covering half here, and letting the rest ride. Then you should visit this portion of my Amazon wish list. (Pick out something nice !)


Here's the breaking news about the first heads rolling at Lehman (more to follow).

Sometime ago, my pal Charlie Gasparino quoted a CEO about how "the shorts were full of bullshit" on air. (were is that link?) or that "the shorts are getting desperate" or "the shorts are full of it."

As it turns out, not so much.

Charlie -- who is buying me a beer next week -- is now on CNBC, breaking the news, discussing Lehman's CFO and COO, bloggers, shorts, and more. Charlie admits these guys were liars, and that they sandbagged everyone.

click for derogatory video

Financial Sector: Beware LEH, CIT  http://bigpicture.typepad.com/comments/2008/06/financial-secto.html
(back up post)

Dirty Tricks at Lehman?   

Lehman posts Jumbo $3B Loss; To Raise $6B http://bigpicture.typepad.com/comments/2008/06/lehman-posts-ju.html

Chart(s) of the Day: Bear Stearns & Lehman Bros    http://bigpicture.typepad.com/comments/2008/03/charts-of-the-d.html

Thursday, June 12, 2008 | 12:25 PM | Permalink | Comments (27) | TrackBack (0)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post



TrackBack URL for this entry:

Listed below are links to weblogs that reference Updating Lehman Sell Call:


That wishlist is fabulous. LOL! I have got to get one of those watches.

Posted by: Ed H | Jun 12, 2008 12:42:59 PM

The comments to this entry are closed.

Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      


Complete Archives List



Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:

Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo



Odds & Ends

Site by Moxie Design Studios™